Cabinet approves continuation of Atal Pension Yojana till 2030-31, how people will benefit?
The Union Cabinet chaired by the Prime Minister, Narendra Modi, on Wednesday approved the continuation of Atal Pension Yojana (APY) up to FY 2030-31 along with extension of funding support for promotional and developmental activities and gap funding.
Scheme was introduced to initiate the habit of compulsory savings
The government of India announced the Atal Pension Yojana in the year 2015 for the workers of the unorganized sector. The scheme was introduced to initiate the habit of compulsory savings for retirement. The Atal Pension Yojana is designed for daily wage workers who want to save a small amount of money for a fixed pension once they retire. Moreover, APS can also be availed by individuals working in the private sector, who are neither taxpayers nor a part of any social security scheme.
The account holder of Atal Pension Yojana are eligible to get a period pension of Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000 or Rs. 5000 as per the monthly contribution.
Implementation Strategy
The scheme will continue up to 2030-31 with Government support for:
Promotional and Developmental activities to expand outreach among unorganised workers including awareness, capacity building.
Gap funding to meet viability requirements and ensure sustainability of the scheme.
Major Impact
Ensures old-age income security for millions of low-income and unorganised sector workers.
Enhances financial inclusion and supports India’s transition to a pensioned society.
Strengthens the vision of Viksit Bharat @2047 by providing sustainable social security.
Launch
APY was launched on 9th May, 2015 with the objective of providing old-age income security to workers in the unorganised sector.
Scheme Features
APY offers a guaranteed minimum pension of Rs.1,000 to Rs.5,000 per month starting at age 60, based on contributions.
Progress
As of 19th January, 2026, over 8.66 crore subscribers have been enrolled, making APY a cornerstone of India’s inclusive social security framework.
Need for Extension
Sustained government support is essential for continued awareness, capacity building, and bridging of viability gaps to ensure the scheme’s sustainability.